Case History – AOAC Airline Station Financial Control System
Continental Airlines; Houston, Texas, USA
Contact:
Deborah Tholen, Vice President, Flight Operations.
Business Type:
International Airline in USA.
Previous Training Program:
None – this program was developed to decrease fraud due to missing tickets and cash flow manipulation.
Client Objective:
To train 1,900 station employees with the new AOAC system of ticket stock and flight cash sales management. Course goals were to:
- Decrease fraud through ticket stock manipulation by convincing them the new system would detect fraud
- Increase cash accountability from in-flight beverage sales by training attendants to accept the new system
- Increase use of daily reporting system to account for ticket stock and cash sales.
System Implemented:
ICAL established an ICAL Innovation Institute to train Continental employees to design courses in several key business sectors. ICAL also trained a national Continental team of trainers to deliver these initiatives.
Accomplishments:
ICAL worked with a team of Continental SME’s to create the 2-day AOAC Station Financial Controls Course. ICAL also trained a team of trainers to deliver the training at each station. The AOAC Course achieved the goal of convincing employees at each station that the new program would catch any fraudulent activity. Within 30 days of training at each station, the fraud and cash flow discrepancies were corrected. The Kirkpatrick outcomes are below:
Satisfaction:
- 100% course attendance
- Adopted system within 30 days
- 100% compliance
Knowledge:
- Increased word of mouth
- Increased reporting accuracy
- Increased post-test scores
Application:
- Decreased missing tickets
- Increased cash reporting
- Increased inventory accuracy
Return on Investment:
- Decreased missing ticket stock
- Decreased missing beverage stock
- Increased beverage revenue
- Increased profitability per station
- Course investment: $185,000 for 1,900 employees over 2 months
- Additional Revenues attributed to the training: an average of $660,000 the first 12 months after adoption
- Return on Investment: 357% the first year, with ongoing returns due to stronger fiscal controls.
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